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Reliv International, Inc. Reports Second Quarter Results

CHESTERFIELD, Mo., Aug 07, 2006 /PRNewswire-FirstCall via COMTEX/ -- Reliv International, Inc. (RELV) , a developer, manufacturer and marketer of a proprietary line of nutritional supplements addressing basic nutrition, wellness needs, weight management and sports nutrition, today reported lower net sales and net income for the second quarter of 2006 compared to the same period last year.

For the second quarter, net sales were $27.8 million, down 2.4 percent from $28.5 million in the second quarter of 2005. Net income was $1.62 million, down 18 percent from $1.98 million in the same quarter of last year. Diluted earnings per share were $0.09 compared to $0.12 diluted earnings per share in the year-ago quarter.

For the first half of 2006, sales were $59.0 million, up from $57.5 million during the same period last year. Net income was $4.07 million in the first half of 2006 compared to $4.04 million in the same period in 2005. Earnings per share rose $0.01 to $0.25 a share for the first half of 2006.

Reliv reported sales outside the United States rose 13 percent to $2.8 million for the second quarter, with sales increases recorded in most of the company's seven international markets. The strongest increases were reported in Australia/New Zealand, which was up 14 percent, and the United Kingdom, up 36 percent versus the second quarter of 2005. This increase reverses a downward slide in sales in non-U.S. markets that began last year.

"About two years ago we made a conscious decision to invest more resources, both senior management time and new personnel, in our international operations. We said we would straighten out those operations, and the second- quarter international sales increase is evidence that we are beginning to move in the right direction," said Robert L. Montgomery, president, chairman and CEO of Reliv.

"We were disappointed with our U.S. results as compared to last year. But with extra international resources in place, senior management can now return our full focus to our overall operations, and we believe we can achieve positive sales and earnings growth," he added.

"My confidence is based on two key factors: One, we offer distributors an outstanding business opportunity supported by a well defined, disciplined system proven to help our distributors expand their businesses. Two, we make nutrition simple with products that are effective, easy to use and affordable," Montgomery said.

To boost sales, Reliv announced a special "Mega Bonus" program at its 2006 international conference in St. Louis last week, attended by nearly 6,000 distributors. "We will hand out more than $700,000 in new bonuses at Reliv's international conference in St. Louis in August 2007," Montgomery said. "The money will be divided among the top 50 distributors in group sales volume between Aug. 1, 2006, and July 31, 2007, with the first-place winner receiving $100,000." Combining the Mega Bonus funds with Reliv's existing monthly bonuses will bring total distributor bonuses for the next 12 months to more than $1 million.

Reliv International, Inc., based in suburban St. Louis, Mo., develops, manufactures and markets a proprietary line of nutritional supplements addressing basic nutrition, specific wellness needs, weight management and sports nutrition. Reliv sells its products through an international network marketing system of approximately 65,000 independent distributors. Reliv International's common stock trades on The Nasdaq Stock Market(R) under the symbol RELV. Additional information about Reliv International, Inc. can be obtained on the Web at http://www.reliv.com .

Statements made in this release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," or similar expressions.

Factors that could cause actual results to differ are identified in the public filings made by Reliv with the Securities and Exchange Commission. More information on factors that could affect Reliv's business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on the Reliv's web site, http://www.reliv.com .